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Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?

To: patron_anejo_por_favor who wrote (38679)	7/31/2000 1:43:54 AM
From: Ed Forrest	Read Replies (1) \| Respond to of 77398

Does it bother you in the least? I take neither the time nor the mental effort to worry about matters of which I have no control.I could care less if Cisco manages earnings.As an investor all I'm interested in is making money. They can fry,boil,barbeque,broil,bake or however they choose to cook 'em.Just show me the money.I'm not interested in how,just how much.I leave scruples to the high minded of the world.

To: patron_anejo_por_favor who wrote (38679)	7/31/2000 2:06:46 AM
From: Uncle Frank	Read Replies (1) \| Respond to of 77398

>> That's one possibility. The other is that the balance sheet is tortured just enough each quarter to confess ".01 above analyst". As a long time student of Cisco, I'd like to propose a 3rd alternative. Cisco has installed management systems that allow them to easily perform trial closes during the quarter. As they fine tune their earnings projections, they communicate with the analysts, who modify their expectations accordingly. They undercall their potential by .01, and the analysts adopt it with a wink, knowing Cisco will beat it by .01 over and over and over again. As a result of the predictability of Cisco's earnings and their outstanding top line growth, they have become the darling of analysts and institutional investors. This is one of the reasons they have been able to gain and maintain a valuation that some critics deem excessive. That's my theory and I'm sticking to it <lol>. uf

To: patron_anejo_por_favor who wrote (38679)	7/31/2000 7:33:49 PM
From: RetiredNow	Respond to of 77398

It doesn't bother me. Some companies are more in touch with their Wall Street analyst than others. Cisco has more visibility into its pipeline than any other company. Therefore, there forecasts are very good. But that's only half the game. Controlling the analyst forecasts is the other half. Cisco is also good at guiding expectations. Then finally, they are very good at working with there salespeople and resellers to push out sales to the next quarter when they've made the numbers already. These tactics are all legal and above board. Everyone wants a smooth steady ramp and that's what Cisco gives them. No company can successfully hide bad numbers forever. So if Cisco was doing something shady we'd already know about it. They simply have mastered the art of working with the folks on Wall Street. This is expectations management at its best, nothing more.

To: patron_anejo_por_favor who wrote (38679)	7/31/2000 10:31:40 PM
From: Don Pueblo	Respond to of 77398

You bring up an excellent point. If this company is as good as they appear to be, they at some point will be forced to readjust their guidance upwards. I am long this stock. We shall see if I am right.